By: Paula Beatriz Morales1
and Jorge Omar Moreno2
Real options represent an extension of the theory of financial options applied to non-financial assets. This theory is based on management’s flexibility to modify its decisions when it identifies changes in the business climate. In this paper, we analyze the characteristics of these financial instruments, their types and valuation, and present some examples of how they can be used in administrative practice.
By: Renata Herrerías
CFA
Saving is the opposite of consumption. We save so that we can consume more in the future or at least consume the same amount as we do today. For example, the objective of the pension systems around the world is to ensure that people, at the time of their retirement, can replace their labor income with the resources saved during their working years. This means that the wealth they generated during the years they worked should be enough to support them throughout their entire life.
Public-Private Partnerships to Promote Infrastructure Development in Mexico
The recent global financial crisis that began in 2008, has aroused increasing interest in alliances between the public and private sectors, not just in developing countries, but in developed countries as well.
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